Key insights
- Lumentum (LITE) shares surged after CEO Michael Hurlston stated that the company's AI server optical components are sold out through early 2029, with demand significantly outpacing production capacity. The company is investing in capacity expansion in Japan and considering acquisitions. This news positively impacted other photonics and optical networking stocks, including Applied Optoelectronics (AAOI), Coherent (COHR), and Corning (GLW), as well as Nvidia (NVDA).
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Lumentum shares are rallying Friday after the company said it’s selling out of AI server products.
Shares of Lumentum (LITE) were up 7% in recent trading after CEO Michael Hurlston told Bloomberg in a televised interview that the company’s optical components are “completely sold out” through early 2029.1
Applied Optoelectronics (AAOI), Coherent (COHR), Corning (GLW), and other photonics and optical networking stocks followed Lumentum higher. The Roundhill Photonics & Optics ETF (LYTE) rose 3%.
“We are really trying to catch up, add capacity as fast as we can, but we are very, very far behind what customers want,” Hurlston told Bloomberg. The CEO said Lumentum is investing in boosting production capacity at its facilities in Japan, and that the company is considering acquisitions to expand its offerings in the next year.
Lumentum has seen demand soar as big tech companies expand their data center footprint, boosting shares of the Nvidia-backed (NVDA) firm and others in the space. Lumentum’s stock has roughly tripled this year with Friday’s gains.